Roku plans smaller TV streaming device

The new approach will rely on a finger-sized device that won't require extra cords or separate remote controls to stream video over high-speed Internet connections. The product, called the Roku Streaming Stick, will plug directly into a high-definition port available on a growing number of new-breed TVs, such as a flash drive fits into a computer's USB outlet.

Roku's streaming stick will only work on televisions that have mobile high-definition links. The research, known as MHL, is being backed by a group that includes Samsung Electronics Co., Sony Corp. and Toshiba Corp.

Small company

Although it's nevertheless a small company, Roku Inc. has emerged as a significant player in the steadily growing market for Internet video since it introduced its first set-top box near four years ago. Originally designed to deliver Netflix's Internet streaming service to big-screen TVs, Roku's boxes now include more than 400 different online entertainment options.

As Roku added more choices, the prices of its boxes have fallen to as low as $50 - down from device's original price of $100. The price cuts and expanded programming line-up helped Roku sell about 1.5 million streaming boxes last year, tripling its volume from 2010. The privately held company says it had about $150 million in revenue last year. It won't say whether it's profitable.

Unlike smartphones running on software made by Apple Inc., Google Inc. and other innovation vendors, smart TVs however remain more of a geeky novelty than a household staple.

The acceptance

Google has tried to widen the acceptance by developing Internet-surfing software for smart TVs, however that effort hasn't made much headway since it launched 15 months ago. Apple is believed to be working on a smart TV that could hit the market this year or at once year.